By Jonathan Stempel

NEW YORK, Sept 2 (Reuters) - Colgate-Palmolive CL.N agreed to pay $332 million to settle a long-running class-action lawsuit accusing the consumer products company of making mistakes in calculating its employees' pensions.

A preliminary settlement covering 1,177 employees was filed on Friday night in Manhattan federal court and requires a judge's approval. Employees would receive about $232.7 million after lawyers' fees and expenses are deducted.

The case had its origins in 1989, when Colgate converted its pension plan to a cash balance plan and let participants receive benefits in lump sums.

Colgate amended its plan in 2005 to retroactively award annuity payments to participants who received lump sums but had not received the full value of their benefits. The plaintiffs said Colgate erred in calculating those payments.

Litigation over Colgate's pensions began in 2007, and Friday's settlement addresses a lawsuit filed in 2016.

Colgate denied wrongdoing and said it settled to avoid the risk and expense of more litigation. It did not immediately respond to a request for comment.

The New York-based company set aside money for the settlement in the first quarters of 2023 and 2025.

Other Colgate brands include Hill's Pet Nutrition, Irish Spring, Speed Stick, Lady Speed Stick, and Tom's of Maine.

The case is McCutcheon et al v. Colgate-Palmolive Co et al, U.S. District Court, Southern District of New York, No. 16-04170.

(Reporting by Jonathan Stempel in New YorkEditing by Rod Nickel)

((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net/))